In a month that saw the Reserve Bank of India and the United States Federal Reserve raised interest rates, foreign investors pulled over Rs 6,400 crore from domestic equity markets in the first four trading sessions of May. Foreign portfolio investors (FPIs) remained net sellers for the seventh straight month till April, as they withdrew more than Rs 1.65 lakh crore from equities. This was mainly on account of the anticipation of a rate hike by the US Fed and the deteriorating geopolitical environment following Russia’s invasion of Ukraine. After six months of selling spree, FPIs turned net investors in the first week of April amid correction in the markets and invested Rs 7,707 crore in equities. However, after a short break, they again turned net sellers during the holiday-shortened April 11-13 week, and the sell-off continued in the succeeding weeks too. In May till date, FPI flows continue to remain negative as they sold nearly Rs 6,417 crore during May 2-6, data released by depositories showed. The trading in market was closed on May 3 on account of Eid. WITH PTI
